Core Viewpoint - The article discusses the recent controversy surrounding Sam's Club's product selection, highlighting the impact on its Chinese suppliers, with at least 18 listed food companies collaborating with Sam's Club, most of which are recent entrants [1][2]. Supplier Overview - A list of suppliers and their products is provided, indicating the entry dates and specific items offered, showcasing a diverse range of food products [2]. - Some suppliers, like Youyou Foods, have seen significant revenue increases after entering Sam's Club, while others have struggled with declining profits [2][5]. Business Impact - Entering Sam's Club can be a double-edged sword for suppliers. While it offers exposure and potential sales growth, it also imposes challenges such as long payment terms and pressure to lower prices [3][10]. - Youyou Foods reported a projected revenue increase of 40.91% to 50.77% for the first half of 2025, largely attributed to the success of its "deboned duck feet" product [5][7]. - Conversely, companies like Ganyuan Foods have faced declining profits since entering Sam's Club, with a projected net profit drop of 54.96% to 56.16% for the first half of the year [13]. Strategic Considerations - Brands must evaluate their operational capabilities before entering Sam's Club to avoid losing control over their development in pursuit of short-term gains [3][10]. - The stringent quality management and product customization required by Sam's Club can create operational pressures for suppliers, particularly smaller companies [14]. Market Dynamics - The article notes that suppliers may experience increased accounts receivable due to the nature of Sam's Club's payment structure, as seen with Youyou Foods' accounts receivable rising 18 times year-over-year [10]. - The competitive landscape is further complicated by Sam's Club's strict product approval process, which can limit suppliers' ability to sell similar products through other channels [13][14].

Core Insights - The ongoing controversy surrounding Sam's Club has drawn significant attention to its Chinese suppliers, with at least 18 domestic listed food companies currently collaborating with Sam's, most of which have entered the market in the past two years [1] Supplier Overview - A list of suppliers includes notable companies such as: - Youyou Foods, which saw a revenue surge after launching its "Deboned Duck Feet" product at Sam's [2] - Other suppliers like Yili Group and Nongfu Spring have also entered the market recently, with various products ranging from dairy to snacks [2] - Some suppliers, like Youyou Foods, have experienced substantial revenue growth, while others have struggled with declining profits and brand visibility [2][6] Business Dynamics - Entering Sam's Club can be a double-edged sword for suppliers. While it offers exposure and potential sales growth, it also imposes significant operational challenges [3][7] - Suppliers face long payment terms and increased accounts receivable, as seen with Youyou Foods, which reported an 18-fold increase in accounts receivable due to new customer contracts [7] - The pressure to lower prices for Sam's can lead to reduced profit margins, as evidenced by companies like Qiaqia Foods, which saw a decline in gross margins despite increased revenue from direct channels [8] Performance Metrics - Youyou Foods projected a revenue increase of 40.91% to 50.77% for the first half of 2025, largely attributed to the success of its "Deboned Duck Feet" product [4] - In contrast, Ganyuan Foods reported a significant decline in net profit, down 54.96% to 56.16% in the first half of the year, highlighting the risks associated with entering the Sam's channel [10] Strategic Considerations - Brands must evaluate their operational capabilities before entering Sam's, as the partnership can lead to both short-term gains and long-term challenges, including brand dilution and dependency on a single channel [3][11] - The stringent quality management and product customization requirements imposed by Sam's can create additional burdens for suppliers, particularly smaller companies that may struggle with the associated costs [10][11]